How Easy is it to Change Invoice Finance Providers with Hydr’s Modern Platform?

Invoice finance products are constantly evolving. What might have been right for you and your business last year may not now suit you today. However, having spent a lot of time and effort getting financing arranged you may well have the view that it’s ‘better the devil you know’ and maintain the status quo.

But, just how much effort is it to move providers of invoice finance and what are the steps? In this article we discuss the process of changing invoice finance providers, and how Hydr can help to make this process easier. 

Considerations when changing invoice finance providers

Changing invoice finance providers doesn’t need to be difficult, however, there are some important considerations that need to be resolved before switching providers such as the nature of the contract you have signed up to, and the terms around the facility.

So, what are the key considerations when switching invoice finance providers? 

Review the nature of the contract before switching invoice finance providers

Firstly, when reviewing the nature of your contract, look carefully to see if there is a minimum term and what the break fees might be. Much like transferring your mortgage early, you may face additional charges to change from your current invoice finance provider. In this instance, it might make more sense to stick out the term of the contact and move providers after the contact has expired.

Be aware of the registered charges from your current invoice finance provider

Another consideration is to navigate the charge or debenture that will most likely have been registered against your business at Companies House shortly after you signed your lending agreement. Although you may have arranged finance for only a part of your ledger (or even just a single customer), it’s highly likely that the finance provider will have taken take a debenture against your business in which they will have a claim on all its assets including invoices that you have issued and will issue in the future.

Put simply, if you were to default on your financing arrangement, the company providing that financing has the right to call on any of the assets of your company, ahead of anyone else, in order to recoup the funds they have provided to you.

How Hydr makes switching invoice finance providers easy

So, how does Hydr help you simplify the process of switching invoice finance providers? At Hydr, we remove the stress of switching providers by taking care of the process from start to finish.

We will liaise with your current partner on your behalf, understanding what balances need to be cleared and ensuring that any debentures are released. In addition, we will manage your customer relationships with care to ensure the process of switching is as hassle free for them as it is for you.

We firmly believe that we have come up with a proposition that is as straightforward and as business-friendly as possible: We fund 100% of the value of your invoice for a fee that is fixed and transparent. 

You receive that amount (100% minus our fixed fee) in one installment – and the fee never changes, even if your debtor is a little behind in making payment. But, more importantly than that, we do not take a charge or a debenture against your company, nor do we sign you up to a minimum term contract. So, should you decide to leave our platform, you simply confirm over email and, from that point forward, your only obligation to us is for the length of time it takes for that last invoice funded by the platform to be paid by your debtor to us.

That’s why we call what we do Advanced Invoice Payment. It’s a little different to the other invoice finance providers – for all the right reasons.

Summary

As you can see, whilst there are numerous considerations when changing invoice finance providers, Hydr ensures the process is seamless by taking care of everything. When switching to Hydr, we liaise with your current invoice provider to ensure all balances have been cleared, and we manage your customer relationships with care to ensure the switching process is hassle free for everyone involved. 

Think you’re ready to switch to Hydr? Get started with our invoice financing platform and enjoy the peace of mind that we will manage the whole switching process. Sign up with Hydr today 

or get in touch with our team to learn more about our innovative financing solutions.

*Invoices are financed and paid within 24 hours for debtors who have undergone the initial verification. When nominating a debtor to be funded for the first time, Hydr needs to conclude due diligence prior to funding.